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waterman7833 waterman7833
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4 months ago
What is the major argument that supports the "bird in the hand theory"?

▸ Dividend payments signal the good standing of the firm.

▸ There is no difference between dividend yields and capital gains.

▸ The risk profile of the firm depends on the risk of its cash flows, not its dividends.

▸ Present value of growth opportunities are more volatile, hence increase the risk of the firm.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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OCbobaOCboba
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4 months ago
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waterman7833 Author
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4 months ago
Thanks
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Yesterday
This helped my grade so much Perfect
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Helped a lot
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